Still think TITNC3: Return of the Iceberg was peak

Ok...so who "pays for that"?

 

True but unlike shares, with options u can stack racks quick. My friend has been spending like 3k on calls every week and turning it into 10k and he just put a down payment on a house with his earnings. Dude inspired me to start trading options

 

Oh, true - it's a risk v. reward thing. You risk losing it all, the reward is the upside is way more than stocks alone.

 

Those of us fueling the rocket

 

If you play long calls you only risk what you put in. That’s why I always find option contracts under $1. I have a few 50-60 dollars losses (only on blue chips and not memes lol) but the ones that worked paid pretty big.

 

Yeah! I bought a NOK call for a few bucks before they got picked up alongside the GME thing. I think I did like an 800% gain in a few days on that one. I'd have to go look at my cost basis to confirm, my work computer doesn't like to load it on TD though.

I just spent 8 bucks on a $F put today figured it might work out. But yeah, the cheap ones work out well too. I actually nailed it on the $F rise a while back, got in before they ran up and had calls and about 50 shares. Made a good % even though it wasn't much in $.

 

So, strike price is the price that you’re allowed to buy a share at, and the ask is price per share... for the $27 strike, the option is going to be $16x100, so you’re out $1600 no matter what. If the cost per share is anything above $43, you made money.

For the $35 strike, you’re out $970 no matter what, and only make money if the price per share is $44.70




Am I close?

 

https://youtu.be/GedCw7oGiDQ

 

Ummmm soooooooo

I haven’t messed with the market for 2 days
Been busy with other things.

What the HELL is going on with my Rocket Mortgage stock? Did my long hold become a meme stock???

 

So theoretically there’s a small window where the strike price is lower than the ask price, but you should exercise it and lose a little bit instead of not buying and losing everything you had to pay upfront

 

No.

So, let's say the stock is at 75$, you buy a contract for 100$, strike price of 100$ (I'm aiming for easy math here). At expiry, the stock is trading at 99.50$.

So, you paid 100$ for the contract. Now you're about to pay 100$ for the shares if you execute - OR you can pay 99.50 for the shares, and not execute your contract. Either way, your contract premium is already gone, you can just buy the shares on the open market for less than executing the contract.

 

Yes...one example of this is the
$110 $GME Calls I bought in Jan..
I paid

01/25/2021 12:54:35
Bought 1 GME Jan 29 2021 110.0 Call @ $10
So I paid 10x100=$1000 for that call...
Then 2 days later...

01/27/2021 10:41:49
Sold 1 GME Jan 29 2021 110.0 Call @ $200
Sold the call to someone else for $200x100 $20,000
$20,000- my cost of $1,000= $19,000 profit in 2 days on that one call..


That's why right now I have the $150 $GME call...I'd like to do that again

 

I wanna learn that lol

 

I wish I bought 10...or 20...I spent $10K the day before on 3 of them...and still sold them for $$$ but that $10k would have bought 10 of them the next day...But the whole cash has to settle thing means you can't keep buying and selling. Options take 1 day for the cash to settle...
This is the only time ever got a daytrader warning. I had a call for $1000, sold it for like $4000 and then it dipped again so I bought it back with unsettled cash...

 

Today was a death of a thousand cuts day...All this little things down $100 or $200...Nothing major but it all ads up...